... - expands pipeline of topical analgesic products - ...MISSISSAUGA ON May 29 / Nuvo Research Inc.(T...Nuvo will issue to Paladin 961538 common shares having a value of$12...Paladin has also invested $1000000 in return for 7692307 Nuvocomm...

MISSISSAUGA, ON, May 29 /PRNewswire-FirstCall/ - Nuvo Research Inc.
(TSX: NRI), a Canadian drug development company focused on the research and
development of drug products delivered to and through the skin using its
topical and transdermal drug delivery technologies, today announced that it
has licensed the exclusive rights from Paladin Labs Inc. (TSX: PLB) to
develop and commercialize a novel topical pain formulation with the
potential to treat inflammatory and neuropathic pain conditions. The
formulation is in the pre-clinical formulation development stage and is the
subject of a pending patent application.

Nuvo will issue to Paladin 961,538 common shares having a value of
$125,000 for the right to commercialize this topical pain product. As part
of the transaction, Paladin may receive an additional payment of $250,000
upon achievement of a regulatory milestone and will have rights to market,
distribute and sell the product in Canada, South America, Central America
and South Africa. Nuvo will receive royalties on Paladin sales and will
have exclusive rights to exploit the licensed formulation in all other
territories, including the United States.

Paladin has also invested $1,000,000 in return for 7,692,307 Nuvo
common shares and 769,230 warrants (representing 10% of the number of
common shares issued) by way of a private placement. Each warrant entitles
Paladin to acquire one Nuvo common share during the three year period
following the closing at a price of $0.169. The value of the common shares
issued to Paladin is based on Nuvo's weighted average trading price on the
TSX for the five day trading period ending May 20, 2008. The proceeds of
the private placement will be used by Nuvo for general corporate purposes,
including expenses relating to development of the licensed product.

"We are pleased to expand both our relationship with Paladin and our
topical analgesic dru'/>"/>

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